Helmerich & Payne, Inc. (HP) vs Valaris Limited (VAL)

Helmerich & Payne, Inc. and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.4B against $3.5B — 1.5× the size. Helmerich & Payne, Inc. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 7.0×. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against −11.6%. Valaris Limited has the higher net margin (37.4% vs −3.43%) and the higher return on invested capital (3.13% vs 1.32%). Across the 19 metrics below, Helmerich & Payne, Inc. leads on 10 and Valaris Limited on 9.

Valuation

Metric HP VAL Oil & Gas Drilling median
P/E n/m 6.99 —
P/S 0.88 2.61 1.23
P/B 1.32 1.70 1.07
Price to free cash flow 7.19 n/m 10.44
EV/EBITDA 6.18 23.58 6.86
EV/Sales 1.28 4.05 2.16
Earnings yield (4.00%) 14.31% (0.67%)
Free cash flow yield 13.91% (1.84%) 5.47%

Profitability

Metric HP VAL Oil & Gas Drilling median
Gross margin 28.82% 24.16% 38.58%
Operating margin 2.25% 8.98% 8.58%
Net margin (3.43%) 37.35% (0.52%)
Free cash flow margin 12.25% (4.80%) 3.36%
Return on equity (4.95%) 27.89% (1.53%)
Return on assets (2.08%) 15.76% (0.45%)
Return on invested capital 1.32% 3.13% 2.81%

Growth

Metric HP VAL Oil & Gas Drilling median
Revenue growth (TTM) 16.57% (11.61%) 3.33%
EPS growth (last fiscal year) (148.40%) 172.18% (46.88%)
Revenue growth, 5-year CAGR 16.13% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HP VAL Oil & Gas Drilling median
Debt to equity 0.70 0.33 0.59
Current ratio 1.96 1.64 1.76
Net debt to EBITDA 2.87 0.78 0.90

Dividend

Metric HP VAL Oil & Gas Drilling median
Dividend yield 2.84% — —
Payout ratio — — —

Size

Metric HP VAL Oil & Gas Drilling median
Market cap 3.47b 5.37b 3.47b

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